The bankruptcy will also stay on your credit report for up to 10 years. What steps can you take to best manage bankruptcy?
It is important that you learn as much as possible about your rights as it relates to filing for bankruptcy. During a bankruptcy case, creditors are generally unable to contact you or move forward with a repossession or a foreclosure.
Chapter 7 bankruptcy is ideal for those who have unsecured debts and few assets. Chapter 13 bankruptcy is best for those with secured debts or debts that can't be discharged.
When you file for bankruptcy, you will be required to provide information about your income, assets and liabilities.
If you file for reorganization bankruptcy, you will be required to make payments on some or all debts for three to five years. Payments will be made according to a plan that is approved by the bankruptcy court.
Know Your Rights
It is important that you learn as much as possible about your rights as it relates to filing for bankruptcy. During a bankruptcy case, creditors are generally unable to contact you or move forward with a repossession or a foreclosure.
If you get any demand for payment from a creditor, contact your attorney, the case trustee or the bankruptcy court immediately. Doing so may prevent you from making payments or otherwise enduring harassment that you don't need to go through.
Know What Type of Bankruptcy to File For
Chapter 7 bankruptcy is ideal for those who have unsecured debts and few assets. Chapter 13 bankruptcy is best for those with secured debts or debts that can't be discharged.
Professionals, like those at Demers Gagnier Inc., may be able to help you understand your options and which type of protection from creditors is right for you.
Know the Requirements before You File
When you file for bankruptcy, you will be required to provide information about your income, assets and liabilities.
You will also be required to go through credit counseling within 180 days of filing. Taking the process seriously and providing any information asked of you in a timely manner may prevent your case from being dismissed or rejected.
Stick to the Repayment Plan
If you file for reorganization bankruptcy, you will be required to make payments on some or all debts for three to five years. Payments will be made according to a plan that is approved by the bankruptcy court.
Making your plan payments as required may avoid challenges from creditors or other problems that could result in your case being dismissed. If you have trouble making payments, get in touch with the case trustee as soon as possible.
`Bankruptcy is ideally a last resort for dealing with debt after all other options have been exhausted. However, when done correctly, bankruptcy may help you get a handle on your finances both today and in the long run.
`Bankruptcy is ideally a last resort for dealing with debt after all other options have been exhausted. However, when done correctly, bankruptcy may help you get a handle on your finances both today and in the long run.
If you are thinking about filing, make sure to do so with the help of an attorney or financial adviser to make it easier to manage the process.
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